Former Vice President Joe Biden declared that, as president, he would move to ensure that Americans with student loans have some of their debt “immediately” wiped away.
Outstanding student loan debt currently stands at more than $1.5 trillion.
On Monday, a reporter asked Biden if student loan forgiveness is part of his economic agenda. Biden responded affirmatively, no doubt pleasing the Democratic Party’s far-left members.
“It’s holding people up,” Biden said of student loan debt according to a New York Times report. “They’re in real trouble. They’re having to make choices between paying their student loans and paying their rent, those kinds of decisions. It should be done immediately.”
Biden voiced support for a proposal from House Democrats that would forgive $10,000 of student loan debt per borrower.
“Immediate $10,000 forgiveness of student loans, helping people up there in real trouble,” Biden said according to a Fox News report.
House Democrats originally proposed forgiving $10,000 of student loan debt per borrower as part of their proposal for a second COVID-19 relief bill, which had a price tag of $3 trillion, making it the most expensive bill in history. The legislation was never considered in the Republican-controlled Senate because of its high cost.
Is forgiving debt a good idea?
Biden is staying in the middle ground by supporting the forgiveness of just $10,000.
For many Americans, any forgiveness is too much, especially for those who worked their way through college to graduate without debt or those who worked diligently right after graduation to pay off their debt. But for progressive Democrats — and many young people, in fact — $10,000 would not be enough.
On Tuesday, Rep. Alexandria Ocasio-Cortez (D-N.Y.), one of the most influential Democrats in the country, reiterated her demand for complete debt cancelation.
She said, “‘Things were bad for me, so they should stay bad for everyone else’ is not a good argument against debt cancellation – student, medical, or otherwise.”
Contrary to what progressives like Ocasio-Cortez claim, “canceling debt” is not something that actually exists. Lawmakers could remove a borrower’s liability for repaying the debt, but the debt has to be passed on to somebody.
In the case of federal student loans, the burden would be placed on American taxpayers.
Canceling student loan debt rewards Americans who choose to go into debt for a degree — and agree to re-pay that debt — while penalizing Americans who did not choose debt, one critic told Ocasio-Cortez.